Huajian Group Pivots to EV Assembly as AGOA Suspension Hits Textile Export Business

China’s Huajian Group is preparing to open an electric-vehicle assembly plant in the Eastern Industrial Zone (EIZ) in Dukem, 40 kilometers south of Addis Ababa, as part of its plans to expand investment in Ethiopia,

The firm is already importing vehicles from China through an agreement with Guangzhou Automotive Corporation (GAC), and preparations are underway to launch semi-knocked down (SKD) assembly operations by next year, according to Teferi Melese, vice president of the EIZ.

The electric vehicles assembled by Huajian will be offered exclusively in the domestic market.

The foray into automotives is unexpected from Huajian, whose investments in Ethiopia so far have been limited to footwear and apparel. The manufacturer was hit hard and forced to close its doors by the COVID-19 pandemic and Washington’s decision to suspend Ethiopia from the African Growth and Opportunity Act (AGOA) in late 2021.

It resumed operations in early 2023, but Ethiopia’s rescinded AGOA privileges mean Huajian has turned its focus to the domestic market, Hua Rong Zhang, founder and chairman, told state media.

Teferi says the company also plans to expand into real estate development in Ethiopia.

During the Ethiopian Investment Expo 2025, which concluded this week, Chinese companies signed investment agreements valued at USD 1.6 billion.

Among the major deals signed were a  USD 600 million coal development investment agreement with Sequa Mining Company, a joint venture between Ethiopian and Chinese investors, and a USD 500 million mining development agreement with Huawei Mining Company.

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